Binance Sees Rising Stablecoin Outflows Indicating Market Caution
The October 10 flash crash continues to impact the cryptocurrency market, with major assets under pressure. An on-chain analysis highlights a key factor: stablecoin netflow trends.
Stablecoin Netflow Trends
- A CryptoQuant post by analyst CryptoOnchain notes a shift in stablecoin activity on Binance.
- The 7-day moving average of stablecoin netflow has dropped below zero, indicating a switch from inflows to outflows.
- This trend is supported by recent spikes in outflows across both TRC20 and ERC20 networks.
Short-Term Market Outlook
- Increased stablecoin netflow to exchanges often signals rising demand for cryptocurrencies.
- Current decline in netflow suggests less interest in risky assets, indicating market caution.
- This pattern after a price correction could lead to further bearish pressure.
As of now, Bitcoin is valued at approximately $111,400, with a slight increase of 0.54%. Ethereum shows similar growth, priced at about $3,936. The total stablecoin market cap stands at $319 billion, up by 0.14%.